"Our customers expect safe, reliable and clean energy at an affordable
price, and this request supports the investments needed to deliver on
those expectations," said Dave Sparby, president and CEO of Northern
States Power Co.-Minnesota, an Xcel Energy company. "Our proposal
provides more manageable and predictable bills while allowing us to
provide high-quality service and customer value."

The company proposes prices for a two-year period, during which
investments in carbon-free energy sources, a diverse supply mix and
service reliability improvements are at their peak. Average customer
rates would increase by 4.6 percent effective Jan. 3, 2014, when interim
rates would take effect. A typical residential customer's monthly bill
would increase by about $4. Average customer rates would increase an
additional 5.6 percent during 2015.

These rates are based on the company's increased cost of providing
service of $193 million in 2014 and $98 million in 2015. "Our objective
is to moderate our request and keep the annual rate increase between 4
and 6 percent as we complete major improvements to our electric system,"
Sparby said. "Post-2016, we believe our costs will be at or below the
rate of inflation, and customers will have the benefit of a healthy,
diverse system for well into the future."

Approximately 45 percent of the increase is for investments that allow
continued operation and increased output at Xcel Energy's nuclear plants
for an additional 20 years, and new wind resources. "Our portfolio of
nuclear plants and new wind power will allow us to avoid carbon
emissions by more than 200 million tons over their lives," Sparby said.
"These investments help keep customer costs low and are essential to
achieving state energy policy goals calling for a 30 percent reduction
in carbon emissions by 2025."

Approximately 25 percent of the increase stems from the company's
efforts to strengthen refresh and modernize the electricity grid and
implement technology improvements to ensure a safe and reliable system
for customers.

"We saw first hand the importance of a resilient electric grid during
the devastating June 2013 storms that resulted in half of our Minnesota
customers being without power," Sparby said. "Our investments and
preparation allowed us to restore service far more quickly than
utilities in other parts of the country have been able to do after
similar events. Minimizing the number and duration of future power
outages is one of our top priorities."

Much of the remainder of the request stems from the cost of other power
plants, including the return to service of Sherco 3 after an extended
outage. The company's diverse supply mix provides important benefits for
customers, including offering a hedge to rising and volatile fuel costs.

Even with the proposed increase, Xcel Energy expects rates will remain
below the national average. The company also offers extensive programs
to help customers manage their energy use and reduce their bills.

"We are committed to making sound investments that balance the desire
for clean and reliable energy with low costs," Sparby said. "We look
forward to a thorough review and to working with regulators and
customers on our plan."

The Minnesota commission will schedule public hearings, which are
expected to be held in the spring or summer of 2014. A decision is
expected in early 2015. More information can be found online at www.xcelenergy.com.
A copy of the rate case filing will be available on the commission's
website at www.puc.state.mn.us.

Xcel Energy
XEL, +0.20%
is a major U.S. electricity and natural gas
company with regulated operations in eight Western and Midwestern
states. Xcel Energy provides a comprehensive portfolio of energy-related
products and services to 3.3 million electricity customers and 1.8
million natural gas customers through its regulated operating companies.
Company headquarters are located in Minneapolis. More information is
available at www.xcelenergy.com.

This news release includes forward-looking statements, such as
statements about future rates, investments, and emissions reductions,
that are subject to certain risks, uncertainties and assumptions. Such
forward-looking statements are intended to be identified in this
document by the words "anticipate," "estimate," "expect," "projected,"
"objective," "outlook," "possible," "potential," "should" and similar
expressions. Actual results may vary materially. Forward-looking
statements speak only as of the date they are made, and we do not
undertake any obligation to update them to reflect changes that occur
after that date. Factors that could cause actual results to differ
materially include, but are not limited to: general economic conditions,
including their impact on capital expenditures; customer business
conditions and business conditions in the energy industry; competitive
conditions in the marketplace; fiscal, taxation and environmental
policies; unusual weather; legislative and regulatory initiatives that
affect cost and investment recovery, have an impact on rates or have an
impact on asset operation or ownership or impose environmental
compliance conditions; changes in competition in the electric and
natural gas markets; costs and other effects of legal and administrative
proceedings, settlements, investigations and claims; actions by
regulatory bodies impacting our nuclear operations; financial or
regulatory accounting policies imposed by regulatory bodies; and the
other risk factors listed from time to time by Xcel Energy Inc. in
reports filed with the Securities and Exchange Commission, including
Risk Factors in Item 1A and Exhibit 99.01 of Xcel Energy Inc.'s Annual
Reports on Form 10-K for the year ended Dec. 31, 2012, and Quarterly
Reports on Form 10-Q for the quarters ended March 31, 2013, and June 30,
2013, and Sept. 30, 2013.

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